Open Letter to Congress on Behalf of America’s Small Businesses

By Sergio Retamal, CEO of Global4PL

    According to the U.S. Small Business Administration, there are 30.7 million small businesses in the U.S., which employ 47.3 percent of the private workforce. Together, small- and medium-sized businesses (SMBs) are the economic engine of our country.

    Yet, they have been left out of the latest government bailout initiated as a response to the Covid-19 pandemic. Simply put, the risk of massive layoffs and bankruptcy in this sector would be devastating to the millions of people employed in this sector as well as the U.S. itself. The wealth imbalance will deepen and the overall economic stability of the country will be jeopardized.

    The federal government’s role and responsibility is to take action now to protect the millions of workers and small business owners who are critical in helping the U.S. respond to this crisis.

    Why then, would Republican and Democratic lawmakers take an August recess while millions of business owners are going under? I am speechless. How can Congress turn its back on our country’s SMBs and the millions they employ, adding to the carnage that has worsened since the PPP (Paycheck Protection Program) loans that provided a safety net for eight weeks ended two months ago? Have our elected officials in Washington D.C. become so calloused that the pain and suffering of millions of Americans is not enough to prevent them from taking a month off?

    In my view, they have distorted the differences between Main Street and Wall Street. Let’s be honest. If the  stock market had plummeted by 15 to 20 percent they would not have gone into recess. Instead, politicians would have postponed their recess and worked on legislation to “save the economy.” It’s clear that the plight of millions of Americans and the SMBs who employ them is not as important as the big corporations, many of which are doing quite well right now.

    Covid-19 has exposed so many disparities in our society, including the widening chasm in Washington D.C. when it comes to government assistance in a time of crisis and who benefits, and who does not. What I know is this: SMBs are the backbone of America’s economy and workforce. It’s a shame that Congress lacks the moral fortitude to do its job and help them when they need it most.

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